Zettle vs Square Fees: Which Payment Processor Is Cheaper?
Running a business means making smart financial decisions, and one of the biggest is choosing the right payment processor. This decision directly impacts your bottom line, and understanding the fees associated with each option is crucial.
Today, we’re diving deep into a crucial comparison: zettle vs square fees. We’ll explore the fee structures of both Zettle by PayPal and Square, breaking down the costs associated with each transaction type. This information will empower you to make an informed choice.
Whether you’re a small business owner, a freelancer, or a retail giant, understanding how these fees work is vital. This comparison will help you determine which platform offers the most cost-effective solution for your specific needs, maximizing your profit margins.
Specs at a Glance:
| Feature | Zettle | Square |
|---|---|---|
| Hardware Compatibility | iOS & Android | iOS & Android |
| Card Readers | Bluetooth Card Reader | Card Reader, Terminal, Stand |
| Payment Types Accepted | Chip, Tap, Swipe, Digital Wallets | Chip, Tap, Swipe, Digital Wallets |
| Inventory Management | Yes | Yes |
| Reporting & Analytics | Yes | Yes |
| Customer Management | Yes | Yes |
| Online Store Integration | Yes | Yes |
| Integrations | Limited | Extensive |
| Hardware Options | Card Readers, Printer | Card Readers, Terminal, Stand, Kitchen Display System |
| Offline Mode | Yes | Yes |
| Customer Support | Email, Phone | Phone, Chat, Email |
| POS System | Yes | Yes |
Feature-by-Feature Breakdown
Transaction Fees
- Zettle: Zettle typically charges a flat-rate transaction fee, often around 2.29% + $0.09 for in-person transactions and 2.9% + $0.09 for online transactions. This can be straightforward for businesses with varying transaction amounts. However, it might not be the most cost-effective solution for high-volume, low-value transactions.
- Square Fees: Square also uses a flat-rate pricing model, usually around 2.6% + $0.10 for in-person payments, and 2.9% + $0.30 for online transactions. This simplicity is a major selling point. However, like Zettle, it might not be the most economical choice for all business types.
- Winner: Tie
Hardware Costs
- Zettle: Zettle offers a relatively affordable card reader, often available for a one-time purchase. Their hardware ecosystem is generally considered user-friendly and cost-effective for smaller businesses. Additional hardware options are available, such as docks and stands.
- Square Fees: Square provides a range of hardware options, including a free card reader (for basic transactions) and more advanced point-of-sale systems. Their hardware can scale with a business’s needs, but the more advanced systems come at a higher upfront cost.
- Winner: Zettle
Payment Methods Accepted
- Zettle: Zettle accepts a wide range of payment methods, including credit and debit cards (Visa, Mastercard, American Express, Discover), contactless payments (Apple Pay, Google Pay, Samsung Pay), and chip cards. This comprehensive coverage ensures flexibility for customers.
- Square Fees: Square also supports a broad array of payment methods, including credit and debit cards, contactless payments, and digital wallets. Square’s support for payment methods is very comparable to Zettle.
- Winner: Tie
Software & Features
- Zettle: Zettle provides a basic but functional point-of-sale (POS) system with inventory management, sales reporting, and customer management features. It’s suitable for small businesses looking for simplicity. More advanced features may require integrations or third-party apps.
- Square Fees: Square’s POS system is more feature-rich, offering advanced inventory management, employee management, appointment scheduling (depending on the plan), and more in-depth analytics. It caters to businesses with more complex needs.
- Winner: Square
Customer Support
- Zettle: Zettle offers customer support through various channels, including email and phone. The quality of support can vary, and response times might not be as quick as some competitors.
- Square Fees: Square provides customer support through phone, email, and online resources. Their support is generally considered reliable, and they have a strong online knowledge base.
- Winner: Square
Integrations
- Zettle: Zettle integrates with a variety of third-party apps, allowing businesses to connect with accounting software, e-commerce platforms, and other tools. The number of integrations is somewhat limited compared to Square.
- Square Fees: Square offers a robust marketplace of integrations with popular business tools, including accounting software, e-commerce platforms, and marketing services. This broad integration capability allows for seamless workflow.
- Winner: Square
Reporting & Analytics
- Zettle: Zettle offers basic sales reporting and analytics to track key metrics. These reports provide essential insights into sales performance. However, they may lack the depth of analysis offered by Square.
- Square Fees: Square provides comprehensive reporting and analytics dashboards, offering detailed insights into sales, customer behavior, and inventory performance. This data-driven approach helps businesses make informed decisions.
- Winner: Square
International Availability
- Zettle: Zettle is available in a wide range of countries, making it a good choice for businesses with international operations. Availability is a key strength for global reach.
- Square Fees: Square’s international availability is more limited compared to Zettle, although it continues to expand its presence. Check specific country support before choosing Square for international use.
- Winner: Zettle
Winner by Category:
| Category | Winner |
|---|---|
| Ease of Use | Zettle |
| Features | Square |
| Integrations | Square |
| Hardware Options | Square |
| Customer Support | Square |
What They Have in Common:
- Mobile Payments: Both Zettle and Square allow businesses to accept payments on the go using card readers and mobile devices.
- Card Readers: Both offer card readers that connect to smartphones or tablets to process payments.
- Inventory Tracking: Both platforms provide basic inventory management features to help businesses track stock levels.
- Reporting & Analytics: Both offer reporting and analytics tools that let you track sales, view transaction history, and gain insights into your business performance.
- Customer Management: Both provide features for managing customer data, such as storing contact information and purchase history.
- Online Sales: Both platforms provide options to sell online through integrated online stores.
Zettle Vs Square Fees Buying Guide
Understanding Transaction Fees
Both Zettle and Square charge transaction fees for processing payments. These fees are a percentage of each transaction, and understanding them is crucial for your business’s profitability. Zettle typically offers a flat rate per transaction, which can be predictable. Square, on the other hand, might offer slightly varying rates based on the type of payment (e.g., card-present vs. card-not-present). It’s essential to compare these rates, considering your average transaction size and sales volume to determine which option is more cost-effective for your specific needs. Look beyond the headline rate; consider any additional fees.
Card-Present vs. Card-Not-Present Fees
Card-present transactions, where the card is physically swiped, dipped, or tapped at the point of sale, usually have lower fees than card-not-present transactions. Card-not-present transactions, such as online sales or keyed-in transactions, carry a higher risk of fraud for the payment processor, leading to increased fees. Zettle and Square both differentiate their fees based on these transaction types. Analyze the proportion of your sales that fall into each category to accurately assess the overall cost. Evaluate the impact of these differences on your profit margins, especially if you operate a business with a significant online presence.
Hardware Costs and Considerations
Both Zettle and Square offer hardware solutions to process payments. These can range from simple card readers to more comprehensive point-of-sale (POS) systems. Consider the initial cost of this hardware, as it can be a significant upfront investment. Zettle’s hardware is often competitively priced, while Square’s hardware might have a wider range of options, potentially with more advanced features. Think about your business’s needs now and in the future. Evaluate the functionality, ease of use, and compatibility of the hardware with other business tools. Consider whether you need a portable or stationary setup.
Monthly Fees and Subscription Plans
While both Zettle and Square offer free plans, they also provide paid subscription options with additional features. These paid plans can include advanced reporting, inventory management, and employee management tools. Zettle’s premium features might be bundled with hardware or offered as add-ons. Square’s subscription tiers often unlock more sophisticated functionalities like online ordering or advanced analytics. Carefully evaluate your business’s needs to see if the extra features are worth the monthly fee. Determine if the features offered justify the added costs and improve your operational efficiency. Compare the features to the price.
Hidden Fees and Unexpected Charges
Beyond the standard transaction fees and subscription costs, be aware of any hidden fees that might apply. These could include chargeback fees, international transaction fees, or fees for using specific features. Read the fine print of both Zettle and Square’s terms of service to understand all potential charges. Consider whether your business handles a lot of chargebacks or international sales, as these could significantly impact your costs. Ensure you understand the fee structure, and budget accordingly to avoid any surprises. Look out for any fees related to software integrations or data storage.
Payment Processing Speed and Reliability
The speed and reliability of payment processing are critical for a smooth customer experience. Both Zettle and Square generally offer reliable processing, but occasional outages can happen. Consider the impact of downtime on your business and the reputation. Check the payment processing times for different transaction types (e.g., card swipes, online payments). Assess the availability of customer support in case of processing issues. Research online reviews to gauge the overall reliability and customer satisfaction related to payment processing. Ensure you have backup options or contingency plans.
Who Should Buy What?
Buy Zettle If…
- You need a simple, easy-to-use payment processing solution.
- You value straightforward pricing and don’t require advanced features.
- You operate a small business with basic payment processing needs.
Buy Square If…
- You need a more comprehensive POS system with advanced features.
- You require extensive integrations with other business tools.
- You want access to a wider range of hardware options, like terminals and POS stands.
Frequently Asked Questions
What are the main differences in transaction fees?
Zettle often offers a flat transaction fee, making it easy to understand and budget. Square might have slightly varying rates based on the payment method (card present vs. card not present). Square’s rates may vary slightly. Consider your average transaction size and sales volume to determine which is more cost-effective. Analyze the proportion of your sales that fall into each category.
Does Zettle or Square offer better rates for online payments?
Square generally has competitive online payment processing rates. Zettle’s online rates might be slightly higher, so compare them carefully. Check the rates for online transactions, considering your transaction volume. Evaluate your online sales volume to determine the most cost-effective solution. Compare the fees.
What hardware options do Zettle and Square provide?
Both offer hardware like card readers and POS systems. Square often has a broader range, including more advanced options. Consider the initial cost and features. Evaluate the functionality, ease of use, and compatibility of the hardware with other business tools. Determine if you require a portable or stationary setup.
Are there any monthly fees associated with using these services?
Both offer free plans with basic features. They also offer paid subscription options with advanced features like inventory management and reporting. Determine if the extra features are worth the monthly fee. Carefully evaluate your business’s needs to see if the extra features are worth the monthly fee.
What are the potential hidden fees to be aware of?
Watch out for chargeback fees, international transaction fees, and fees for specific features. Read the terms of service carefully to understand all potential charges. Ensure you understand the fee structure, and budget accordingly to avoid any surprises. Check for fees related to software integrations or data storage.
How reliable is the payment processing with each provider?
Both Zettle and Square generally offer reliable processing. Occasional outages can happen. Check the payment processing times for different transaction types. Assess the availability of customer support in case of processing issues. Research online reviews to gauge the overall reliability and customer satisfaction.
Which service is better for small businesses?
It depends on your specific needs. Zettle’s simplicity and flat fees may be appealing. Square’s broader features and varying rates might suit some. Consider your average transaction size, sales volume, and the need for advanced features. Consider your average transaction size.
Final Verdict
Square offers a more comprehensive suite of features and has competitive online payment processing rates, making it a strong contender for businesses with more complex needs. While Zettle provides straightforward pricing and ease of use, Square’s flexibility and potential for scaling make it the preferred choice in this comparison. Square has a slight edge due to its more robust ecosystem.
Winner: Square